Councillors demand stay on evictions

SHANNON Town Council has called on the Government to introduce a two-year moratorium from the time mortgage holders go into arrears, before repossession proceedings can be taken.
Councillors, at a meeting on Tuesday, warned of a “horrendous” time ahead for mortgage holders as a huge number are likely to encounter repayment problems.
Councillor Gerry Flynn said a very significant housing problem could emerge, with people losing their privately bought houses and being forced to look to Clare County Council for support that it wouldn’t be able to offer.
“It will be like the evictions of years ago and the council don’t have the wherewithal to deal with it,” Councillor Flynn declared.
In proposing that the Government consider giving mortgage holders who run into serious difficulty a measure of relief for two years, Labour Councillor Greg Duff said huge numbers of householders are at risk.
“The revelation that over 15,000 mortgage holders have been forced to rely on support from the Mortgage Interest Relief Scheme is a clear indication that the number of people struggling to make repayments is spiralling dramatically.
“The numbers of people provided for by the scheme has increased seven-fold since 2005 but it remains little more than a sticking plaster solution to what is a much greater problem.
“After all, we recently learned that 35,000 mortgage holders are in arrears and that 6,400 homes are in danger of being repossessed.”
Councillor Duff claimed the Government has not grasped the nettle.
“This Fianna Fáíl/Green Government is still floundering on this issue and the only idea that they could come up with to tackle this critical issue was to set up an expert group. That group will not submit a report until the end of June.
“The problem of tackling mortgage difficulties needs to be dealt with within a legislative framework, which would create a fair and level playing pitch. This would provide mortgage holders with a supported mediation service, where they are properly informed and advised of the consequences of any new arrangement that they make with the bank in meeting their obligations.”
Councillor Tony Mulcahy said people chained to mortgages they cannot afford have no way out.
“Bankers have created a scenario where people can’t sell their house if they want and we’re going to have a horrendous time over the next two to five years.”
He claimed there is a contrast in the type of behaviour that is seen as acceptable for high-level bankers, compared to ordinary punters.
“Nobody has obeyed the rules at the top level and now they’re expecting the ordinary Joe Soaps to follow them at the bottom.”
He said that even a two-year moratorium would not suffice and that after being bailed out by the State, banks would have no qualms about squeezing taxpayers through interest rate increases.
Councillor Gerry Flynn claimed the State has not shown an interest in protecting citizens, in contrast to its treatment of the banks. “There’s no NAMA for Seán and Siobhán citizen.”
The scale of the problem should not be underestimated, Councillor Patricia McCarthy added. “It’s an unprecedented crisis and it’s getting worse,” she said.
She said that there has been a concerted effort by Government, developers, bankers and auctioneers to get people to spend on housing and the public shouldn’t suffer from the fallout.
“The least that should be done is that they be let stay in their houses,” she commented.
Councillor Michael Fleming said that on Friday week he will be unemployed for one year and he acknowledged the situation is difficult.
He added that the crisis is also affecting senior citizens, parents who have helped their sons and daughters to get onto the property ladder.
At the conclusion of the debate, Councillor Duff proposed that the motion be sent to other councils, which was accepted. “It should be discussed across the Republic and the debate should be heated up,” he said.